Billet price peaked last week and reached USD 369/mt ex-work
including VAT on Wednesday from the average of USD 356/mt on last Saturday. Higher
base price of billet at IME provided the atmosphere for this rise, but main
reasons behind this upward trend were:
1- Releasing the demand which was being accumulated during last
month, which cancellation of transactions at IME improved it.
2- Higher ex-rate
Increasing billet export level
4- The need to increase price of billet and slab at IME to
improve stock market situation for steelmakers.
DRI price was USD 163 - 169/mt during last week in Iran, but
due to the upward trend of billet, It will change. Of course, DRI sellers will
have to raise prices, and this will affect price of billet. Other factors are
contributing to billet price rise, such as end of the holy month of Ramadan,
the improvement in China demand, rising iron ore prices and rising oil prices,
therefore, generally billet price won’t be down ward. Besides, latest billet
export price has been USD 364/mt FOB Iranian ports.
Last week saw a rise
in long products prices in Iran market. Average price of rebar, which was USD 409/mt
on Saturday, peaked on Wednesday to USD 422/mt ex-work including VAT. The
reason behind this price increase was higher billet price. Some market insiders
believe long products prices will continue to rise as base price of rebar at
IME has reached USD 381/mt. When 9% VAT and seller’s profit margin will be
added to this, retail market price won’t be lower than USD 437/mt.
I-beam market had
the same situation and is expecting upward trend in coming weeks. It should not
be forgotten that higher long products prices will lead to an increase in price
of billet and DRI, so any change in the price of the rebar in case of stability
and non-return will have multiple effects that will not allow the price to
HRC 2 mm thickness was
USD 563/mt ex-work Esfahan and USD513/mt ex-work Ahwaz by last Saturday, which
reached USD 583/mt in Esfahan and USD 536/mt in Ahwaz by the end of the week.
HRC thickness 3-15 mm were priced at USD 555/mt on Tuesday, which reached USD 579
/mt by Wednesday. HRC price has reached its peak, but the increase in billet
price at IME and the improvement of slab demand abroad were reasons behind
higher HRC price, so market expectation is upward.
Oxin co HRP
thickness 10- 40 mm were priced at an average of USD697/mt on Saturday, which
reached USD 703/mt by last Wednesday. Market participants expect HRP market
stay firm as slab price and its export level is upward.
CRC price improved
slowly during last week in Iran. Its average
price on Saturday was USD 962/mt, which reached USD 970/mt by Wednesday. CRC
transactions at IME, which had seen a sharp rise in prices, were canceled,
confusing the market. Since summer is time for higher seasonal demand of CRC,
it can be a stimulus for higher CRC price, but its transactions volume is still
HDG thickness 0.40
to 1.5 mm on Saturday was priced at USD 815/mt ex-work including VAT. With higher
HRC price and improvement of ex-rate, its price reached USD 840/mt.
weekly average ex-rate for Steel Products (SANA): Rials 171.507 / 1USD